Chevron To Spend $500M On Transocean Rigs

Chevron, the second-largest U.S. oil company, said it will spend nearly $500 million on two rigs made by Transocean, the world's largest provider of offshore drilling services. The two drilling rigs, known as jack-ups, will be used for shallow water projects off the coast of Thailand.

California-based Chevron (CVX) will lease each rig from Transocean (RIG) for a period of five years at a cost of $246 million each. Switzerland-based Transocean is expected to spend $400 million on the rigs.

The contracts start in the first quarter of 2013. Each rig will have room for 150 workers. The jackup rigs will be capable of operating in water depths up to 350 feet and constructing wells 35,000 feet deep. The rigs will feature the most advanced offshore drilling technology, including offline tubular handling features and simultaneous operations support, Transocean said in a statement.